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F.O.B.:
A
term of sale defining who is to incur transportation charges for the shipment,
who is to control the shipment movement, or where title to the goods passes to
the buyer; originally meant "free on board ship."
Fair
Return:
A profit level that enables a carrier to realize a rate of return on
investment or property value that the regulatory agencies deem acceptable for
that level of risk.
Fair
Value:
The value of the carrier's property; the calculation basis has included
original cost minus depreciation, replacement cost, and market
value.
FAS:
See Free Along
Side.
FCL:
See Full Container
Load.
Federal
Aviation Administration:
The federal agency that administers federal safety
regulations governing air transportation.
Federal Maritime
Commission:
Regulatory agency responsible for rates and practices
of ocean carriers shipping to and from the United States.
FEU:
Forty-foot equivalent unit, a standard size intermodal
container.
Field
Warehouse:
A warehouse that stores goods on the goods' owner's property while the
goods are under a bona fide public warehouse manager's custody. The owner uses
the public warehouse receipts as collateral
for a loan.
Fill
Rate:
The percentage of order items that the picking operation actually
found.
Final Destination:
The
last stopping point for a shipment.
Finance
Lease:
An equipment-leasing arrangement that provides the lessee with a means of
financing for the leased equipment; a common method for leasing motor carrier
trailers.
Financial
Responsibility:
Motor carriers must have bodily injury and property damage
(not cargo) insurance of not less than $500,000 per incident per vehicle; higher
financial responsibility limits apply for motor carriers transporting oil or
hazardous materials.
Finished
Goods Inventory (FGI):
The products completely manufactured, packaged, stored, and
ready for distribution.
FIPS:
Federal Information
Processing Standards.
Firm Planned
Order:
In a DRP or MRP
system, a planned order whose status has been updated to a fixed
order.
Fixed
Costs:
Costs that do not fluctuate with the business volume in the short
run.
Fixed
Quantity Inventory Model:
A setup wherein a company orders the
same(fixed) quantity each time it places an order for an item.
Flatcar:
A railcar without sides, used for hauling
machinery.
Flexible-Path
Equipment:
Materials handling devices that include hand trucks and
forklifts.
Flight Number:
An
identifier associated with the air equipment (plane). Typically a combination of
two letters, indicating the airline, and three or four digits indicating the
number of the voyage.
Flow
Rack:
A storage method where product is presented to picking operations at one
end of a rack and replenished from the opposite end.
For-Hire
Carrier:
A carrier that provides transportation service to the public on a fee
basis.
Foreign
Trade Zone
(FTZ):
A site sanctioned by the U.S. Customs
Service in which imported goods are exempted from duties until withdrawn for
domestic sale or use. Such zones are used by commercial warehouses or assembly
plants.
Forklift
Truck:
A machine-powered device used to raise and lower freight and to move
freight to different warehouse locations.
Form
Utility:
The value the production process creates in a good by changing the item's
form.
Forwarder's Bill of
Lading:
See Consolidator's Bill of Lading.
FPA:
Free of Particular
Average. See Marine
Cargo Insurance.
Free Along Side
(FAS):
The seller agrees to deliver the goods to the dock
alongside the overseas vessel that is to carry the shipment. The seller pays the
cost of getting the shipment to the dock; the buyer contracts the carrier,
obtains documentation, and assumes all responsibility from that point forward.
Free of Particular
Average:
See Marine
Cargo Insurance.
Free on Board (F.O.B.) (exchange
point):
This expression follows an exchange point. The exchange
point indicates the transition of responsibility (risk) from the buyer to the
seller. See also Terms of Sale. For example: F.O.B. Origin The seller agrees to
deliver the goods to the point of origin.
Free Time:
The period of
time allowed for the removal or accumulation of cargo before charges become
applicable.
Free Trade
Zone (FTZ):
See Foreign Trade
Zone.
Freight:
Goods being
transported from one place to another.
Freight Alongside Ship:
The point of embarkment chosen by the buyer, from where a carrier transports
goods. Under this designation, a seller is obligated to pay the cost and assume
all risks for transporting goods from a place of business to the FAS point.
Freight Bill:
The carriers
invoice for payment of transport services rendered.
Freight Charge:
The rate
established for transporting freight.
Freight Collect:
The
freight and charges to be paid by the consignee.
Freight Forwarder:
An
enterprise that provides services to facilitate the transport of shipments.
Services can include documentation preparation, space and equipment reservation,
warehousing, consolidation, delivery, clearance, banking and insurance services,
and agency services. The forwarder may facilitate transport by land, air, ocean,
or may specialize in one mode of transport. Also called Forwarder or Foreign
Freight Forwarder.
Freight
Forwarders Institute:
The freight forwarder industry association.
Freight Prepaid:
The
freight and charges to be paid by the consignor.
Freight Quotation:
A
quotation from a carrier or forwarder covering the cost of transport between two
specified locations.
Freight-All-Kinds (FAK):
An approach to rate making whereby the ante is
based only upon the shipment weight and distance; widely used in TOFC
service.
FTL:
See Full Truck Load.
FTZ :
See Foreign Trade
Zone and Free Trade
Zone.
Full
Container Load (FCL):
A term used when goods occupy a whole
container.
Full Truck
Load (FTL):
Same as Full Container Load, but in reference to
motor carriage instead of containers.
Full-Service
Leasing:
An equipment-leasing arrangement that includes a variety of services to
support the leased equipment; a common method for leasing motor carrier
tractors.
Full-time Connection:
A
communication link between two (or more) entities which is normally maintained
continuously.
Fully
Allocated Cost:
The variable cost associated with a particular output unit
plus a common cost allocation.
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Logistic terms
